Picton Mahoney Asset Management Buys Shares of 321,930 The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Picton Mahoney Asset Management acquired 321,930 shares of The Charles Schwab Corporation, valued at approximately $25.2 million, in the first quarter.
• Charles Schwab reported a net margin of 33.68% and a 24.8% increase in revenue year-over-year, with quarterly earnings surpassing analysts' expectations.
• The company announced a $0.27 quarterly dividend and initiated a $20 billion stock repurchase plan, signaling confidence in its stock valuation.

Picton Mahoney Asset Management acquired a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 321,930 shares of the financial services provider's stock, valued at approximately $25,200,000.

Several other hedge funds have also modified their holdings of SCHW. Geode Capital Management LLC raised its position in shares of Charles Schwab by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 30,901,484 shares of the financial services provider's stock worth $2,279,742,000 after acquiring an additional 760,043 shares during the period. Northern Trust Corp raised its stake in Charles Schwab by 13.4% during the fourth quarter. Northern Trust Corp now owns 15,739,917 shares of the financial services provider's stock worth $1,164,911,000 after purchasing an additional 1,864,286 shares during the period. Invesco Ltd. increased its stake in Charles Schwab by 3.0% during the fourth quarter. Invesco Ltd. now owns 14,842,544 shares of the financial services provider's stock worth $1,098,497,000 after acquiring an additional 430,250 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Charles Schwab by 27.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,653,684 shares of the financial services provider's stock valued at $862,489,000 after acquiring an additional 2,511,082 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in Charles Schwab by 5.9% during the 1st quarter. Bank of New York Mellon Corp now owns 11,056,953 shares of the financial services provider's stock worth $865,538,000 after acquiring an additional 618,101 shares in the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Up 0.9%

Shares of SCHW stock opened at $97.90 on Tuesday. The Charles Schwab Corporation has a one year low of $61.15 and a one year high of $98.28. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.53 and a quick ratio of 0.53. The stock has a fifty day moving average price of $90.52 and a 200 day moving average price of $83.12. The stock has a market cap of $177.88 billion, a P/E ratio of 26.32, a price-to-earnings-growth ratio of 0.93 and a beta of 0.93.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The company had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.73%. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period last year, the firm earned $0.73 EPS. Analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be given a $0.27 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.10%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Charles Schwab declared that its board has initiated a stock repurchase plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Raymond James Financial restated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a research note on Friday, July 18th. William Blair downgraded shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Bank of America raised their price target on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Piper Sandler upped their target price on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Finally, Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have assigned a buy rating to the stock. Based on data from MarketBeat, Charles Schwab currently has an average rating of "Moderate Buy" and a consensus target price of $98.65.

Insider Activity at Charles Schwab

In other news, insider Jonathan S. Beatty sold 2,850 shares of the company's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $87.57, for a total transaction of $249,574.50. Following the transaction, the insider directly owned 15,219 shares in the company, valued at approximately $1,332,727.83. This represents a 15.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paula A. Sneed sold 8,647 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total transaction of $761,454.82. Following the completion of the sale, the director directly owned 105,654 shares of the company's stock, valued at approximately $9,303,891.24. This represents a 7.57% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 116,313 shares of company stock valued at $10,264,091. Insiders own 6.30% of the company's stock.

Charles Schwab Profile

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.

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